Wednesday, April 21, 2010

Chicago Re-Busting!

Today another major metro housing market is inducted into the Re-Busting lineup of regions that have relented to the organic home price slide (as seen by the Radar Logicdata) despite the generous efforts by the Feds.

Chicago must have appeared too many to have surely bottomed out early last spring after dropping over 30% from its 2007 peak and facing a massive dose of government stimulation.

Yet, short of a feeble spring bounce and reversion and an even more pitiful tax-credit expiration inspired blip in November, prices in Chicago have simply been sliding.

Today, Chicago home prices are setting new lows some 45% below the peak set in 2007 and 17.98% below the level seen just last year.

With the latest tax gimmick expiration expiring with nary squeak in prices for the area, this could be one metro market to keep an eye on for significant housing stress related macro spillover later this year.